STAND. COM. REP. NO. 779

Honolulu, Hawaii

RE: S.B. No. 744

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 744, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to provide financing options for condominium maintenance and repair projects.

More specifically, this measure:

(1) Establishes the Condominium Loan Program and the Condominium Loan Loss Reserves Program within the Hawaii Green Infrastructure Authority;

(2) Establishes the Condominium Loan Revolving Fund;

(3) Requires annual reports to the Legislature; and

(4) Appropriates moneys into and out of the Condominium Loan Revolving Fund;

Your Committee received written comments in support of this measure from the Hawaii Green Infrastructure Authority.

Your Committee received comments on this measure from the Department of Budget and Finance and the Hawaii Bankers Association.

Your Committee finds that more than half of all condominium buildings in the State were built before 1980, and many of those buildings now require major systems replacements, upgrades, and retrofits, all of which are costly and complex. Completion of this necessary work will enhance a project's insurability and promote unit owners' access to secondary mortgage financing. This measure will enable the Hawaii Green Infrastructure Authority to provide financing to condominium associations for these essential repairs and maintenance.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 744, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair